IDFC First Bank has disclosed a major fraud involving accounts linked to the Haryana government. The bank estimates the size of the fraud at around Rs 590 crore, carried out by certain employees at its Chandigarh branch along with other individuals. Four staff members have been suspended, and a police complaint has been filed. The bank has also informed regulators and auditors.
The issue came to light when a Haryana government department requested closure of an account and transfer of funds to another bank. During this process, discrepancies were noticed between the stated balance and the actual account balance. Similar irregularities were later found in other government-linked accounts handled at the same branch.
The bank clarified that the matter is limited to a specific set of Haryana government accounts and does not affect other customers of the branch. A reconciliation exercise is underway to confirm the exact amount involved, as recoveries and adjustments may change the figure.
To recover funds, IDFC First Bank has sent recall requests to beneficiary banks, asking them to mark balances in suspicious accounts. It has also initiated an independent forensic audit by an external agency. Strict disciplinary, civil and criminal action is promised against those responsible.
The fraud was reported to the bank’s Special Committee of the Board for Monitoring Fraud Cases last week, on 20 February, and the audit committee and board were updated the following day.
Source – https://www.hrkatha.com/news/idfc-first-bank-uncovers-rs-590-crore-fraud-by-employees/